How to Evaluate If Your Transportation Management System Is Getting Expected Results

How To Evaluate If Your Transportation Management System Is Getting Expected Results

Transportation management continues to move into the realm of automation. But unfortunately, not all transportation management platforms are created equally. Failures within the transportation management system will become evident in unrelenting freight spend, stalled customer experiences, and limited collaboration with your network. Yes, these platforms add value, but it’s essential to have a few tips for evaluating if the system generates expected results.

Capture and Analyze Transportation Management System Data

Capturing data is essential to understanding whether carriers live up to their commitments. For instance, the TMS might track pickup and delivery timeliness explains Inbound Logistics. “Measuring a carrier’s on-time percentage based on customizable on-time ‘rules’ can give you visibility to overall and individual carrier on-time performance. Knowing which carriers or lanes are likely to cause issues will let you prioritize both your carrier improvement and tracking work.” Of course, tracking carrier data is excellent, but the right system should track all 3PL, LSP, forwarder, or any other freight management partners’ data that you co-own or need as well.
That’s not to say that it should require the surrender of data, but rather, the right system should track your business partners’ performance. If not, your system is missing part of the bigger picture.

Review How the System Supports Omnichannel Expansion

Part of real-time data collection, analysis, and sharing involves omnichannel considerations. Since omnichannel is an anywhere and everywhere approach to logistics, it implies that it must enable limitless, seamless flexibility. In turn, it will help shippers reduce dwell time, lower freight spend, and maximize throughput. Additionally, the system should empower teams to overcome exceptions with automated processes that can handle predefined problem criteria and recognize when human intervention is necessary. In essence, the speed at which the business can return to routine operating procedures quickly and without long-term ramifications directly impacts how well the system can support omnichannel capabilities, including the unyielding demands of e-commerce.

Trying to learn the value of a TMS?

Evaluate How the Platform Has Reduced Risk

Response times matter, especially when monitoring disruption. But analytics that provide insight into the transport and freight markets can help shippers stay proactive. Being aware of changes as they occur with real-time data analysis and sharing remains a vital part of transportation management systems. All of this can make a big difference in transportation’s highly competitive field. And can all be possible with an innovative TMS platform in place.

Look at the Direct Labor or Process Savings Generated by the System

Next, ask, “what did the system do to improve the existing process? Did descriptive analytics come into play, and were prescriptive analytics used to streamline manager’s decisions?” That is the scope of information needed to evaluate this platform’s potential cost-saving measure. And that includes assessing and considering labor resources. In transportation management, laborers may work as dock personnel, gatekeepers, or drivers.

Managing the full symphony of all workers is essential to understanding total landed transportation costs and avoiding unexpected losses. Moreover, there are soft, indirect savings that are highly like labor cost savings. For instance, increased employee satisfaction may lead to less stress and less risk for an incident. Meanwhile, happier workers are quite simply more productive workers.

Get the Results You Need by Choosing the Right System Vendor on the First Try

A secure and robust transportation management system remains critical for success within the transportation and logistics industry. It can impact virtually every aspect of the supply chain. Managers and shippers alike can respond quickly to problems in real-time. Customers can get their orders and shipments without excessive delays. Managers can keep orders and lanes moving efficiently. Shippers and carriers can keep moving with full loads to keep profits flowing. Third-party vendors and partners can work with the supply chain rather than against it by staying on the same page. And it all depends on the quality and value of ROI for the system in use.

Find out the potential value of a TMS for your company by trying one of our ROI Calculators today

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